Firm Secures Seventh Circuit Affirmance in RICO Case for Global Healthcare Company
The Firm secured a significant victory for a global healthcare company when the U.S. Court of Appeals for the Seventh Circuit affirmed a district court dismissal of a case involving claims based on the company’s alleged promotion of a drug for off-label use. The plaintiffs, a proposed class of health insurers and other third-party healthcare payors, brought suit in the Northern District of Illinois under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), alleging that certain representations made by the company caused physicians to prescribe a drug for "off-label" uses, resulting in financial harm in the form of payments or reimbursements for excess prescriptions. In February 2017, the Firm successfully moved to dismiss the complaint in district court on the grounds that the plaintiffs’ liability theory did not satisfy RICO’s proximate cause requirement. The plaintiffs then appealed to the Seventh Circuit. On October 12, 2017, the Seventh Circuit unanimously affirmed the lower court’s decision, holding that “improper representations made to physicians do not support a RICO claim by Payors, several levels removed in the causal sequence.”
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